IRS recently opened Direct File to all 50 states after successful pilot; participation requires further action by Youngkin Administration and General Assembly
WASHINGTON, D.C. – Members of Virginia’s congressional delegation announced today that they have written to Governor Glenn Youngkin urging him to take the necessary steps to allow Virginians the option of using the IRS Direct File program to file their future tax returns. The Treasury Department piloted Direct File for 2023 returns in a smaller group of states, which did not include Virginia, with strong positive feedback from – and savings for – U.S. taxpayers who took advantage of the program. IRS recently announced that it would open participation to all 50 states; Virginia’s full participation will require further actions by the Governor’s administration in concert with the General Assembly.
Rep. Don Beyer, Senators Mark Warner and Tim Kaine, and Reps. Bobby Scott, Abigail Spanberger, Gerry Connolly, Jennifer Wexton, and Jennifer McClellan wrote:
“On May 30th, the Department of Treasury and Internal Revenue Service (IRS) announced that Direct File, a free tax filing tool operated by Treasury and the IRS, will continue as a permanent option for taxpayers. All 50 states are invited to partner with the IRS to provide Direct File as an option to their residents next year. We urge you to take the necessary steps to provide Virginia taxpayers with the option to use this service in the future.
“The IRS piloted a Direct File program during Filing Season 2024. The pilot allowed taxpayers with simple tax situations in 12 states to file taxes for free, directly with the IRS. The results of the pilot indicate the program was well received by taxpayers. 140,803 taxpayers utilized the tool to claim more than $90 million in refunds and save an estimated $5.6 million in tax preparation fees. For Filing Season 2025, the IRS is working to broaden the base of taxpayers eligible for Direct File by including more complex tax situations and inviting all 50 states to participate.
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“Virginia taxpayers deserve access to this free and simple filing option. For many, the tax filing season can be time consuming, expensive, and confusing, even though most taxpayers have relatively simple returns… Virginians should have the same opportunity to access Direct File as they do any other taxpayer assistance program offered by the IRS.
“We ask that your administration work with the IRS, the Treasury Department, and the General Assembly to take the necessary steps for Virginia to join the program as soon as possible. Our offices stand ready to assist in this effort to expand filing options for Virginians.”
Full text of the letter follow below, and a signed copy is available here.
Rep. Don Beyer serves on the House Committee on Ways and Means, which has jurisdiction over tax policy. He has consistently championed the IRS Direct File program to save American taxpayers time and money on their tax return preparation.
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Dear Governor Youngkin:
On May 30th, the Department of Treasury and Internal Revenue Service (IRS) announced that Direct File, a free tax filing tool operated by Treasury and the IRS, will continue as a permanent option for taxpayers. All 50 states are invited to partner with the IRS to provide Direct File as an option to their residents next year. We urge you to take the necessary steps to provide Virginia taxpayers with the option to use this service in the future.
The IRS piloted a Direct File program during Filing Season 2024. The pilot allowed taxpayers with simple tax situations in 12 states to file taxes for free, directly with the IRS. The results of the pilot indicate the program was well received by taxpayers. 140,803 taxpayers utilized the tool to claim more than $90 million in refunds and save an estimated $5.6 million in tax preparation fees. For Filing Season 2025, the IRS is working to broaden the base of taxpayers eligible for Direct File by including more complex tax situations and inviting all 50 states to participate.
For this year’s pilot, the IRS offered Direct File to eligible taxpayers in states that either entered Memorandums of Understanding (MOU) with the IRS or have no generally applicable state income tax. The MOUs allowed IRS to guide taxpayers to state-supported tools for filing stand-alone state tax returns once their federal return was complete. In inviting remaining states to partner with Direct File for 2025, it is understood that states choosing not to participate will eliminate access to Direct File for their residents.
Virginia taxpayers deserve access to this free and simple filing option. For many, the tax filing season can be time consuming, expensive, and confusing, even though most taxpayers have relatively simple returns. The IRS aims to enhance the tax filing experience by offering Direct File as an additional option for taxpayers to utilize, alongside existing free filing options like Free File, the Volunteer Income Tax Assistance program, and the Tax Counseling for the Elderly program. Virginians should have the same opportunity to access Direct File as they do any other taxpayer assistance program offered by the IRS.
We ask that your administration work with the IRS, the Treasury Department, and the General Assembly to take the necessary steps for Virginia to join the program as soon as possible. Our offices stand ready to assist in this effort to expand filing options for Virginians.
Sincerely,
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